Innovative Financing For Development Research Articles

Financial role in supporting the sustainable development goals in ASEAN

Financial sector plays a crucial role in helping a country attaining the Sustainable Development Goals (SDGs) as Financial Means of Implementation (MoI) in the Addis Ababa Action Agenda (AAAA). This report seeks to study sources and uses of fund for the SDGs and evaluate whether the role of the financial sector in ASEAN complies with the AAAA. The study shows that available sources of funds and the level of national incomes or the level of a country’s economic development are closely related. Overall, ASEAN gives the highest priority to economic development, creation of innovation and infrastructure investment (SDG 8 and SDG 9), while environmental development and earth conservation appear to receive lower priority (SDG12- SDG15). Furthermore, low-income countries, such as CLMV countries, cannot afford to finance their SDGs initiatives and hence make slow progress in the SDGs. The per-capita SDGs fund, a proxy for quality of investment in sustainable development, is also differed by the level of country’s incomes. The report also proposes a set of policy recommendations for the development of the financial sector’s role in the SDGs as well as possible innovative financing for development.

The role of foreign investments in the Ukrainian enterprises innovative development financing

The market economy opens wide opportunities for intensification of innovation, so therefore its characteristic feature is the acquisition, use of new knowledge and transformation of knowledge and technologies into a full-fledged factor of production. One of the characteristic features of the market economy and the national economy in general is the ability to attract foreign direct investment, which determines the rapid pace of the country's economic development. Foreign investments, in turn, are indispensable for Ukrainian enterprises in today's realities. Foreign direct investment indicates the long-term interest of foreign investors in the functioning of enterprises, it also stimulates development of enterprises through access to foreign capital. It is a way of development stimulation of enterprises through access to foreign capital. Thus, FDI is a way of combating the problem of low domestic savings. The dynamic development of market relations in Ukraine in the context of the transitive type market transformation requires new approaches to economic management both at the macro level and at the level of individual enterprises. The problems of creating such mechanisms for managing the activities of enterprises, which, in addition to ensuring a sufficient level of solvency, liquidity and profitability, would contribute to the direct growth of the general level of scientific and technical knowledge and, as a result, its use in order to boost business efficiency. In general, innovation is a novelty in the field of engineering, technology, labor organization or management, based on the use of scientific advances and best practices. Innovation is the result of innovative activity, as an activity aimed at transforming research and development or a new approach to the process of providing services. As a result of research the basic problems of financing of innovative activity of the enterprises are studied. Emphasis is placed on the fact that innovation activity involves attracting investment resources of foreign business entities to the process of development and implementation of innovations.

Exploring The Effectiveness Of Financing Resources In Promoting Economic Growth In Lebanon

Mobilizing sufficient domestic and external resources to finance development goals is an intimidating task globally, especially in conjunction with the shortfalls in traditional resources that are no longer enough to bridge the ongoing financing gap in emerging and developing countries. This fact explains the scaled up interest in innovative financing for development as a new pragmatic approach to meet the sustainable development plans. Financing for development and the optimal exploitation of financing resources in boosting economic growth became a priority for developed and developing nations. In this regard, this study aims at testing the efficient utilization and exploitation of finance resources in a small open economy – namely Lebanon, with particular focus on the effect of these resources on economic activity represented by the central bank of Lebanon Coincident Index. The study exploits monthly data covering the period January 2002–June 2017 for: banking sector credit to resident private sector, FDI, remittances, government credit transfers, trade, government tax revenues, government expenditures, and public debt, as explanatory variables. Using a Vector Autoregressive framework, the empirical results reveal that both bank credit to resident private sector and government tax collections lower economic growth, while FDI promotes this growth. On the other hand, remittance inflows, government credit current transfers, external trade, government expenditures, and public debt do not affect significantly economic performance. The feedback effect running from economic growth to the exploited independent variables shows the following: (1) economic growth boosts bank credit supply firstly, then lowers the demand for these credit; (2) a slowdown of economic activity may boost foreign direct investment as the costs of capital and labor decline; (3) an improvement in economic performance allows the government to collect more taxes, and rely less on (or maybe become less illegible for) foreign grants and donations; (4) an increase in national output results in a lower reliance on importation, resulting in a decline in external trade.

Bank financing and innovative development of Russian circumpolar area

PurposeThe purpose of this paper is to study the impact of bank financing on innovative development of Russian circumpolar area and identifying the barriers to its development.Design/methodology/approachUsing the abstract-logical method and a set of methods of economic, statistical and econometric analysis (panel data analysis) the authors examine the role of financial intermediaries in innovative development of Russia and Russian arctic regions.FindingsThe key financial intermediaries in the Russian economy have historically been the banks, which are, at the same time, as it follows from the analysis above, inertly participating in the innovative development financing in the Russian circumpolar regions. Assessment of the potential intensification of the role of banks in the innovative ecosystems has shown that, despite the development of institutional conditions of banks’ resource base compounding and the development of funding, high risks of innovation, multiplying in a volatile external environment, prevent the inflow of bank capital into the innovation sector.Research limitations/implicationsMain limitation is the inability of panel data to capture long-term impacts of bank financing on innovative development of Russian circumpolar area.Practical implicationsThe results suggest that the intensification of the banks’ participation in financing innovation and overcoming the existing challenges will enable to stimulate the process of innovation development of the circumpolar zone in Russia.Originality/valueThere is no study evaluating the impact of bank financing on innovative development of Russian arctic regions.

(Korea's Multilateral Aid: Recent Developments and Future Challenges)

(Korea's Multilateral Aid: Recent Developments and Future Challenges)

Innovative Financing for Development: a Balm of Fierabras?

In this paper we critically analyze the reasons to implement innovative mechanisms for international development funding, and the most relevant innovative instruments applied by the moment. We show how, in the international financing for development (IFfD) system, innovative financing is just another element of engagement. Thus, innovative financing should be analysed in connection with the system’s other basic elements, such as traditional financing instruments and the structure and functioning of the international economic and financial system through which these resources are distributed. Hence, a systemic approach to international financing for development (SAIFfD) is needed. The main conclusion is that, although current innovative instruments should be welcome, there is a need to accelerate the launch of new innovative mechanisms and to develop some important accompanying measures basically related to the reform of international financial architecture.

Mapping innovative finance for development mechanisms

This article aims to offer an OECD benchmark for regular monitoring and assessment of innovative financing for development (IFD), focusing on the relation of IFD with official development assistance (ODA) and aid effectiveness. This article looks at IFD from the perspective of both policy makers and investors from the public sector who are acting in the wider public interest. It presents coherent, compact and comparable information about various mechanisms that allows them to generate and mobilise new resources for development so that they can leverage other resources through the catalytic use of their own funding powers. To do so, this article includes an extensive mapping table that covers a range of IFD mechanisms.

Innovating foreign aid—progress and problems

AbstractThis paper assesses two innovative development financing models—specialised global partnership funds (e.g. The Global Fund) and market‐based approaches (e.g. GlobalGiving). Via a simple typology of development financing approaches these models are shown to contain distinctive and new elements. They have definite strengths, particularly in raising funds as well as unbundling fundraising from design and implementation. However, these models are not panaceas and replicate many weaknesses of ‘traditional’ approaches to foreign aid. Donors should carefully consider the merits of supporting new financing structures relative to including innovative design features within existing aid programmes. Copyright © 2010 John Wiley & Sons, Ltd.

The global crisis, speculative capital and innovative financing for development

One of the characteristics of globalization has been the markedvolatility of financial flows. The realization that this was affecting growth andequity induced the International Conference on Financing for Development,held in Monterrey in 2002, to adopt a global commitment to deal with theissue of development financing. Since then there has been a mixture ofprogress, backsliding and inaction. This article conducts a brief review offinancial globalization and the current global crisis. It then examines theMonterrey Consensus, the evaluations by the United Nations Secretariatof compliance with the commitments accepted, and the financial systemreforms needed to make globalization more equitable. It then proceedsto a stocktaking of the progress made under a North-South collaborationinitiative, Action against Hunger and Poverty, in applying innovativefinancing mechanisms that can contribute to attainment of the MillenniumDevelopment Goals and help developing countries cope with criticalsituations like the current global recession. It concludes with proposalsfor dealing with the challenges that remain.